News Release

Phoenix, Ariz. —   The Arizona Corporation Commission voted on 29 matters, including securities, telecommunications, electric, and water items.  Highlights from the meeting include:

Securities

• Cornerstone Wealth Management, LLC et. al
  

Utilities

• Bonita Creek Water Company
• MWC, Inc.
• Arizona Public Service Company
• ACC Discussion on Ex Parte Report
• ACC Discussion on FERC Order 1920
• ACC Discussion on the Commission’s Inquiry into U.S. EPA Rulemaking
  

Cornerstone Wealth Management, LLC et. al (S-21104A-20-0103) – Christopher Spence Cox of Tucson was ordered to pay a $10,000 administrative penalty for his role as controlling partner of an investment advisory firm that committed fraud. As a licensed investment adviser in Arizona, Smith & Cox, LLC had a fiduciary duty to act in the best interest of its clients with full disclosure of any conflicts of interest or material facts. The Commission found, however, that Smith & Cox, LLC failed to inform investors that the firm and its sole investment adviser representative were respondents in a pending Commission securities enforcement action, which included possible revocation of their licenses. Mr. Cox had a duty to disclose material information to Smith & Cox, LLC clients. 

Bonita Creek Water Company (W-02195B-24-0068) - The Commission voted 5-0 to approve the utility’s rate application. Bonita Creek serves approximately 62 connections in Gila County, northeast of Payson.  The typical residential customer’s monthly bill would increase by about 44%, going from $72.10 to $103.61.

MWC, Inc. (W-02658A-23-0119) – The Commission voted 5-0 to approve an amended version the utility’s emergency rate application. McNeal Water Company (MWC) serves 24 customers in McNeal, Cochise County.  MWC’s application requested and emergency surcharge to recover $32,926.60 which includes a civil penalty imposed by ADEQ and attorney fees. The Recommended Opinion and Order denies the request for an emergency surcharge. The application also included approval to borrow $193,471.14 from WIFA to finance an 8,000-gallon storage tank and other infrastructure improvements necessary to comply with a 2016 ADEQ Consent Order. The financing portion of the application was approved.

Arizona Public Service Company (E-01345A-22-0144) - The Commission voted unanimously to reschedule the start of the limited rehearing granted with respect to the Commission’s February 2024 APS rate case Decision No. 79293 to Monday, October 28, 2024.  Previously, the Commission voted unanimously in April 2024 to grant, in limited part, applications filed by Attorney General Kris Mayes, Arizona Solar Energy Industries Association and Solar Energy Industries Association, and Vote Solar.  Intervenors in this case attempted to expand and broaden the limited scope of the rehearing.  On July 24, 2024, the Administrative Law Judge granted the Staff’s motion to reiterate the limited, narrow scope of the rehearing – ensuring the rehearing does not become a new rate case for all APS solar customers.  As such, the Commission voted to adjust the rehearing date in the case, which was originally scheduled to commence on Tuesday, November 5, 2024.  Chairman O’Connor, noting the date falls on General Election Day during a presidential election year, offered a motion to reschedule the commencement of the rehearing to October 28, 2024.

Arizona Corporation Commission – The Commission discussed the need to clear up its Ex Parte Report and clarify the application of A.A.C. R14-3-113 re: Unauthorized Communications.  Currently, there is a written indication next to each docketed matter covered by the Ex Parte Rule.  Unlike the Commission’s applicable Ethical Rule 7.3, the rule under review does not indicate when the Ex Parte prohibitions no longer attach to a matter. The Hearing Division will run a manual report each month to determine which newly issued Decisions have become final and non-appealable, and will explore an automated process with the help of IT.

Arizona Corporation Commission (ACC Docket: E-00000A-24-0112) – The Commission voted, 4-1, with Commissioner Anna Tovar dissenting, to direct the Legal Division to file a Petition for Review and Subsequent Appellate Briefing before the Ninth Circuit Court of Appeals post FERC Denial of the Petition for Rehearing on Federal Energy Regulatory Council Order 1920.  ACC believes Order No. 1920 goes far beyond FERC’s authority and amounts to a federalization of the intra and interstate transmission grid and production.  Order No. 1920’s provisions do not respect the traditional roles of the states in the siting and cost allocation process and are unlawful and unreasonable. 

Arizona Corporation Commission (W-00000A-23-0085)- The Commission voted 5-0 on Commissioner Myers’ motion to draft a letter to Congress, expressing the need for federal legislation to exempt water and wastewater utilities from Comprehensive Environmental Response, Compensation and Liability Act for Designated PFAS Substances. “Even though the utilities are passive receivers of these substances and not manufacturers of them, water utilities can be held liable for their disposal of PFOA or PFOS treatment media or residuals and wastewater utilities for their disposal of sewage sludge that contains PFOA and PFOS,” said Commissioner Myers.  The Commission believes federal intervention is needed to protect customers from these potential costs.